Total private surplus is equal to total consumer surplus plus total producer surplus.

Question

Quizplus · Accepted Answer

Total private surplus is the sum of the benefits that all individuals in the economy derive from participating in transactions, which includes both consumer surplus (the difference between what consumers are willing to pay and what they actually pay) and producer surplus (the difference between the price at which producers are willing to sell a good and the actual price they receive).

Total Private Surplus Is Equal to Total Consumer Surplus Plus